In ABC partnership, the equity are as follows: Roman George - $50000, Chris Anderson - $30000, Rose Robertson - $18000. The partners share income in the ratio of 4:3:2. Rose retires from the partnership on March 1, and pays $$15000 for her $$18000 equity when she retires from the partnership.

a) Determine the amount of the bonus. Is the bonus going to remaining partners or to Rose?

b) Allocate the payment of the bonus to the remaining partners based on their income ratio.

c) Prepare the journal entry for the withdrawal of Rose in the partnership.

Answer rating: 100% (QA)

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